It has been previously proposed to use a shaft furnace for the direct reduction of iron oxide. Such proposals, however, have generally used a countercurrent flow of highly reducing gases to effect reduction of the iron oxide with the reduction requiring a lengthy period of time because of the gas-solid contact required to effect the reduction.
I have found that by using an iron oxide pellet containing solid carbonaceous material wherein sufficient carbon is present therein to effect complete reduction of the iron oxide under controlled conditions, the iron oxide will be reduced and a molten iron core formed within a slag-type incrustation, which incrustation protects the core from oxidation even under oxidizing atmospheric conditions, until this shell itself is rendered molten.